Racine-based Modine to acquire Luvata Heat Transfer Solutions for $422 million

RACINE -- Modine Manufacturing Company has entered into a definitive agreement to acquire Luvata Heat Transfer Solutions (HTS) for a total consideration of approximately $422 million, according to company officials Wednesday.

According to a report by the Milwaukee Biz Times, the deal will "fundamentally alter" the profile of the company.

Modine expects the transaction to close within calendar year 2016, subject to customary closing conditions, including regulatory review.

According to information released by the company Wednesday morning, here are several highlights of the deal.

Highlights:

1. Addresses "Diversify" and "Grow" commitments in Modine's transformational strategy, announced in October 2015
2. Increases Modine's industrial business portfolio to approximately 40% of sales
3. Further leverages Modine's expertise in the global HVAC&R markets
4. Broadens Modine's customer base and reduces cyclical exposure
5. Expands margin and growth profile of the Company
6. Delivers immediate accretive value to EPS before the expected benefit of approximately $15 million of cost synergies

"We are excited to announce that we have taken the next step in our transformational Strengthen, Diversify and Grow corporate strategy through the upcoming addition of Luvata HTS," said Modine President and Chief Executive Officer, Thomas A. Burke. "Luvata HTS is the largest independent producer of HVAC&R coils and coatings globally. They bring an innovative culture and broad product offering that are highly complementary to Modine. "

Luvata HTS is a leading manufacturer of commercial and industrial coils, coolers and related products, primarily for the HVAC&R markets. In 2015, Luvata HTS had net sales of roughly $530 million and EBITDA of $59 million.

Image: Modine Manufacturing